PIA records 43% increase in profit for year 2019

First time in 8 years, PIA achieves gross profit of Rs7.8 billion against gross loss of Rs19.7 billion in 2018

ISLAMABAD: The Pakistan International Airlines (PIA) has announced its financial results for the year 2019 and recorded an increase of 43% in its annual revenue, according to an annual report of the national flag carrier.

The report pertaining to the complete results of the national flag carrier was submitted to the Securities and Exchange Commission of Pakistan and Pakistan Stock Exchange on Monday.

The national air carrier’s revenue surged to Rs147.5 billion for the year 2019 as compared to Rs103.5 billion in 2018 showing a magnanimous growth of 43% in 2019 (in a single year) while the operating loss was significantly reduced by 76% in 2019 as compared to last year (2018).

The loss before interest and taxation was also reduced by 59% as compared to 2018.

It is for the first time in eight years that PIA has been able to achieve a gross profit of Rs7.8 billion against gross loss of Rs19.7 billion in 2018.

When Air Marshal Arshad Malik joined PIA in 2018, the audits for financial years 2017 and 2018 were pending.

The management first completed the audit for the year 2017 (announced in Sept ’19) and then 2018 (announced in Dec ’19) followed by the Annual General Meetings.

After the completion of the audit for 2019, the national flag carrier’s results are updated and within the stipulated guidelines of the SECP.

The salient features of financial results for the year 2019 are attributed mainly to routes optimization, fares rationalization, enhancement of ancillary revenue in double digits while undertaking stringent cost discipline in all aspects of the business.

The grounded fleet was made fly worthy again while managing a steady supply chain for the spares and another inventory for the maintenance and upkeep of the aircraft was also a hallmark of 2019 performance.

Additionally, the PIA serviced more than Rs19 billion of its loans.

PIA's Seat Factor in 2019 was remarkable and stood at 81% witnessing an improvement of 4 percentage points as compared to the 2018 meeting industry-best scale.

Sharing his views on the completion and submission of financial results for the year 2019, PIA CEO Air Marshal Arshad Malik appreciated the national flag carrier employees and their contribution towards the noteworthy results.

He also appreciated the efforts of the PIA finance team for completing the financial audits of three years, in particular, the audit results for the year 2019.

He thanked Prime Minister Imran Khan and Minister for Aviation Ghulam Sarwar Khan for their support to the national carrier.

“The year 2020 is very challenging for the aviation industry keeping in view the Covid-19 pandemic,” he said.

“Extra efforts will be required and tough decisions will be taken for the betterment of the airline,” he added.

Minister for Aviation has also congratulated the PIA management and vowed his support in all current and future initiatives undertaken by the national flag carrier team to reform the airline.